According to an analysis by CryptoMonday it takes an estimated nine years of household-equivalent electricity consumption to mine one bitcoin.
CryptoMonday CEO Jonathan Merry comments: “Conceptually, it doesn’t seem like bitcoin mining should require enormous amounts of electricity. However, the process is actually quite energy intensive. In order to ensure that the transaction verification process is secure, bitcoin miners must solve math problems that become increasingly difficult as more bitcoins are mined.
“This means that miners must use ever-more powerful computers to stay ahead of the competition. The large amount of electricity required to power these computers is one of the biggest obstacles to profitability in bitcoin mining.”
any analysts believe the high energy consumption of bitcoin mining is due to the proof-of-work algorithm that is used to verify transactions. This algorithm requires miners to solve complex maths problems in order to add new blocks to the blockchain.
For most people, the time, money, and energy required for bitcoin mining simply isn’t worth the potential return. However, those who are still interested in trying their hand at mining should be aware of the significant investment that is required. With a better understanding of the costs and risks involved, miners can make informed decisions about whether or not mining is right for them.
Solving bitcoin’s giant energy consumption problem is a daunting task, but it’s one that the cryptocurrency community must address if the cryptocurrency is to have a bright future.